EUROPE ADVANCED BIODIESEL MARKET ANALYSIS

Europe advanced biodiesel market was valued at US$ 11.41 Bn in 2022, and is expected to reach US$ 32.09 Bn by the end of 2030, exhibiting a CAGR of 13.8% during the forecast period (2023-2030). Rising awareness about the depletion of fossil fuels and sustainable use of energy resources coupled with increasing governmental initiatives in Europe towards increasing the use of renewable energy resources are expected to boost the demand for advanced biodiesel in Europe. For instance, the European Renewable Energy Directive 2009/28/EC established a framework for the promotion of renewable energy sources, setting mandatory targets for achieving 20% of renewable energy in the gross final energy consumption by 2020.

Europe Advanced Biodiesel Market: Growth Drivers

Growing demand for environment-friendly fuels

Biodiesel fuel is similar to diesel fuel but is much more eco-friendly. Biodiesel is a clean, non-polluting energy source. This green transition is seen as a catalyst for the biodiesel market, paving the way for biodiesel suppliers. The need to integrate renewable energy sources is driving the demand for biodiesel. Biodiesel is expected to grow fast in popularity as a replacement for conventional fossil fuels in various applications. Biodiesel is helping several countries across Europe to decrease their reliance on foreign oil reserves and imports since it is manufactured domestically and deployed in a diesel engine with minor or near modifications. Moreover, second-generation and third-generation biofuels, such as those produced using algae, have a greater potential to reduce emissions. Therefore, the growing demand for eco-friendly and sustainable fuels and energy sources across various industries is expected to drive the demand for biodiesel, which in turn is expected to drive market growth.

Figure 1. Europe Advanced Biodiesel Market, By End-Use Industry 2022

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High compatibility of biodiesel with the existing diesel engines

The industry is expected to benefit from increased demand for fuel in commercial vehicles as a replacement for crude oil as it emits fewer Volatile Organic Compounds (VOCs) than traditional fuels, such as diesel. The main target for biodiesel consumption is fuel and power generation applications. Today, automotive and marine industries are using a majority of the fuel produced, which uses components of crude oil in heavy quantities. These conventional fuels release toxicants into the environment. Also, in power generation, biodiesel can be used in generators where only a few changes or no changes are needed to be done to the structure of the machine.

Europe Advanced Biodiesel Market: Market Restraints

Emissions and pollution caused during the production of biodiesel

Substituting conventional fuels with biodiesel blends is considered to be extremely vital for social and environmental reasons; however, there are potential problems associated with its use. Despite the favorable environmental impacts in terms of overall reduced GHG emissions, biodiesel has the potential to increase NOx emissions. Approximately 3% to 4%, 4% to 6%, and 6% to 9% of petroleum diesel are emitted from B20, B40, and B100 respectively.

Europe Advanced Biodiesel Market: Market Segmentation

Among end-use industry, the transportation segment held a dominant position in the Europe advanced biodiesel market in 2022, accounting for 71% share in terms of value. Rising demand for advanced biodiesel from the marine and aviation industry is expected to offer growth opportunities to market players operating in Europe advanced biodiesel market over the forecast period. For instance, according to the report, ‘Biofuels for Aviation Technology Brief’ published on January 2017, by the International Renewable Energy Agency (IRENA), 2014, global consumption of jet fuel was 5.4 million barrels/day (314 billion liters/year) in 2014, and demand for jet-fuel is expected to increase to 9 million barrels/day (522 billion liters/year) by 2040.

Europe Advanced Biodiesel Market: Regional Insights

The countries covered in the market are the U.K., Russia, France, Spain, Italy, Germany, Turkey, Netherlands, Switzerland, Belgium, Luxembourg, and the rest of Europe. France is dominating the market in terms of market share and market revenue due to the growing demand for commercial vehicles in the region. The country section of the report also provides individual market-impacting factors and changes in market regulation that impact the current and future trends of the market. Also, the presence and availability of Europe brands and their challenges faced due to large or scarce competition from local and domestic brands, and the impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Figure 2. Europe Advanced Biodiesel Market, By Region 2022

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Europe Advanced Biodiesel Market: Recent Developments

• In September 2022, Neste launched a strategic study on transitioning its refinery in Porvoo, Finland, to non-crude oil refining and into a globally leading renewable and circular solutions site. Through co-processing and retrofitting units, and benefiting from available refining assets, experience, and know-how Neste targets to significantly grow its renewables and circular production in Porvoo in long term.
• In July 2022, DHL Global Forwarding, the air and ocean freight specialist of Germany’s Deutsche Post DHL Group, signed an agreement with compatriot liner shipping company Hapag-Lloyd for the use of advanced biofuels. As an initial step, Hapag-Lloyd will ship 18,000 TEU of DHL’s volume using advanced biofuels, which is equivalent to a reduction of 14,000 tons of Well-to-Wake CO2 emissions. The two companies share the vision of decarbonizing container shipping and logistics.

Europe Advanced Biodiesel Market: Key Companies

Major players operating in the Europe advanced biodiesel market include Argent Energy (UK) Limited, BDI-BioEnergy International GmbH, Biocom Energia, S.L., Renewable Energy Group, Inc., Olleco, Abengoa S.A., Royal Dutch Shell plc, Archer Daniels Midland Company, Bio-Oils Energy S.A, Münzer Bioindustrie GmbH.

*Definition: Biodiesel is a renewable, biodegradable fuel manufactured domestically from vegetable oils, animal fats, or recycled restaurant grease. Biodiesel meets both the biomass-based diesel and overall advanced biofuel requirements of the Renewable Fuel Standard. Renewable diesel, also called “green diesel,” is distinct from biodiesel.